Building insurance covers your home in addition to other fixtures on your property - such as garages, fences, and sheds - against a wide range of events such as fire, storm, and flood damage. Compare building insurance policies, find the perfect cover, and protect yourself today.
Grab a $100 e-Gift card when you purchase a new eligible Virgin Home Only insurance policy by 30 September 2020. You’ll also save up to 15%. T&C's Apply.
Whilst contents insurance covers the things you own, building insurance protects your actual house. The policies are designed to cover your residential home, including flats, units, and townhouses. Your home is the most important asset you’ll ever own, so you need to make sure you have adequate cover in place for protection against a range of risks beyond your control.
Whilst no two building insurance policies are the same, there are some basics that you should be covered for.
Building insurance covers your residential home, including flats, units and townhouses. These policies also include protection for other structures and fittings on the property such as:
garages and carports
sheds
fences, gates and outdoor walls
decks, patios, pergolas and verandahs
outbuildings
fixed swimming pools and spas
garden borders and pathways
driveways
permanently housed or wired electrical appliances
permanently fixed outdoor items like solar panels and satellite dishes
clothes lines
permanently attached fixtures including wall, ceiling and floor coverings
boat jetties and pontoons.
What fixtures aren't covered by building insurance?
Before you decide on the right policy for you, you’ll need to make sure you’re aware of the fixtures, fittings, events and co
sts that building insurance generally does not cover. Most policies will not provide cover for loss or damage involving the following:
your contents
any new building in the course of construction
any part of the building which is used for farming, for example a barn or a silo
temporary or mobile structures such as caravans or houseboats
inflatable or portable swimming pools and spas
carpets, rugs, blinds, drapes and curtains
air conditioning units which are attached within a window
plants, trees and shrubs
hotels, motels and guest houses.
What events does building insurance cover?
If you're wondering what types of events are covered by building insurance, most building insurance policies cover events including:
flood
fire
storm damage
lightning
earthquake
tsunami
theft and burglary
accidental glass breakage
impact
escape of liquid
explosion
malicious acts and vandalism
riot and civil commotion.
Cover typically includes financial protection for the cost of things like demolition, the removal of debris, rebuilding costs and also temporary accommodation for your family.
What events aren't covered by building insurance?
There are also other specific events and costs for which you will not be covered, such as:
loss or damage caused by a storm surge or the movement of the sea
flood cover will typically not protect you against damage to some things
loss or damage caused by erosion, subsidence, landslide or mudslide
claims for lightning will not be paid
loss or damage caused by power failures or surges
accidental breakage of glass to greenhouses or conservatories
if your building does not catch on fire but receives heat, ash, soot or smoke damage, this will not be covered
damage caused by cigarette burns
theft or burglary by you or someone else who lives at the insured address. The same applies to malicious acts and vandalism claims
leaks from agricultural pipes.
How much does building insurance cost?
We looked at quotes from 11 Australian brands for the exact same house. We got two sets of quotes - one with a rebuild cost of $500,000 and another with a rebuild cost of $1 million. We found that prices can differ by hundreds each year depending on who you insure with.
Quotes were obtained for the same 3-bedroom NSW home in Baulkham Hills owned by a family of two.
Building replacement costs for all quotes was $1,000,000, with an excess of $500.
Contents were valued at $100,000.
Quotes were obtained in 2020 and were for a combined home and contents insurance policy
Homeowning family of two who moved into their property in 2019.
Three bedroom, 1 story freestanding house on flat ground with brick veneer walls, terracotta tiled roof, no verandas and built in 1980.
Windows secured by deadlocks, with no security devices.
How do I choose a policy?
It's easy to sometimes get overwhelmed by a policy's product disclosure statement. There are a few things that you should be looking at in a policy to determine if it's really all it's cracked up to be.
Defined events. Many policies only cover defined events. This usually means that you're covered for things like fire, explosion, storm, earthquake, and vandalism damage. You will not be covered for any events that aren't classified under their events category. Read the PDS in detail and determine if you've got enough cover.
Sum insured. The sum insured is the maximum amount that your insurance company will pay out in the event that your home is totally destroyed. It will typically cover the costs of rebuilding your home. Ensure that you value your home and contents adequately to prevent underinsurance. For a guide to underinsurance, head here.
Safety net. Safety net home protection provides a buffer if the cost of rebuilding exceeds your sum insured. It's typically around 25-30% of your sum insured.
Are there any other policies that might suit me better?
Commercial building insurance
If you’ve got a commercial property as opposed to a residential then commercial building insurance might be a better fit. These policies provide cover for your business’ contents, fixtures and fittings against a variety of events that can result in loss or damage.
There are a few things to be aware of when reading your policy's product disclosure statements. Some of these include:
Termites. Damage from pests such as termites is usually not covered as insurance companies see pests as the homeowner's responsibility. It’s perceived as a preventable damage, rather than an accident. If your property is prone to termites it’s best to become aware of this as soon as possible and treat it as necessary.
Floods. Read carefully about the policy’s stance on floods. What is considered a flood by an insurance company varies wildly, so read in between the lines to determine what you’re covered for. For our full guide on storm and flood insurance, head here.
Strata. If you live in strata such as an apartment block, your body corporate will have their own strata insurance that generally provides cover for your building, parking, and other shared areas. In most cases, you will be required to pay strata fees. Strata does not cover you for interior fixings, so most homeowners with a strata-titled property will also take out a contents only policy.
How much cover do I need?
Having the right level of protection in place can save you thousands of dollars in the long run. However, some estimates suggest that as many as 80% of Aussie’s are under-insured. Whilst it may seem appealing to cut costs at first, the risk of not having enough cover in place is not worth it.
The building insurance policy you take out should cover the total replacement cost of your property, including other expenses which may arise such as temporary accommodation. If you’re under-insured, you’ll have to pay the gap between what your policy covers and the replacement cost for your building, which in many cases could be a substantial amount of money.
The building insurance policy you take out should cover the total replacement cost of your property, including other expenses which may arise such as temporary accommodation. If you’re under-insured, you’ll have to pay the gap between what your policy covers and the replacement cost for your building, which in many cases could be a substantial amount of money.
*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
Richard Laycock is Finder’s insights editor after spending the last five years writing and editing articles about insurance. His musings can be found across the web including on MoneyMag, Yahoo Finance and Travel Weekly. When he’s not doing deep dives on data, he is testing the quality of cocktails in his newfound home of New York. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
Budget Direct Home Insurance Deals
Budget Direct Home Insurance Deals
Virgin Home Insurance Deals
Coles Home Insurance Deals
Real Home Insurance Deal
Westpac Home Insurance Deal
St.George Home Insurance Deals
